Cash woes? A personal loan to the rescue!

    DBS Cashline Review: Best for Short-Term Borrowing Needs

    DBS Cashline, a ready line of credit, could be an excellent choice for your short-term borrowing needs. You may be able to save close to 80% on fees and interest charges when you compare it to an average credit card cash advance. Once your DBS Cashline account is approved, you may use this account as a regular banking account and may use it to pay for your daily expenses. You can draw cash up to the credit limit available. As soon as you repay in full, the limit will be restored to the original amount.

    High Borrowing Limit, Low Interest Charges: Benefits of This Loan

    If you’re looking for standby cash for emergency expenses such as unexpected medical expenses or impulse purchases, the following are some reasons to consider this product as an option:

    • Maximum loan amount: You can draw cash up to the credit limit approved. The limit will be restored to the original amount as soon as you settle the outstanding debt. This means that you can draw and redraw from the same credit facility multiple times.
    • Borrowing limit: Your credit limit could be set at 10x your monthly income if your annual income is S$120,000 or more. If your annual income is below S$120,000, you may be approved a limit of up to 4x your monthly income.
    • Interest charges: Interest on this loan is calculated on a daily basis. You’ll be charged an interest of 0.05% per day on the daily outstanding balance. No processing fee is charged. No interest will apply on unused funds.
    • Instant approval: If you’re an existing DBS/POSB customer with a salary-crediting deposit account to your name, your Cashline account will receive instant approval. You may transact immediately upon approval.
    • Early repayment charges: You’ll be charged no early redemption charges on the outstanding balance.
    • Repayment period: There is no fixed repayment period. You can pay whenever you have sufficient funds. However, a minimum monthly repayment of 2.5% of the unsettled balance, subject to a minimum of S$50, will have to be made, failing which additional fees and higher interest charges may apply.
    • CashCare Protector: This is an optional credit life insurance policy. It’ll pay up to S$100,000 to cover for the outstanding balance on your DBS Cashline in case of detection of early cancer, terminal illness, death, or disability, and up to S$200,000 in case of accidental death.
    • FREE credit report: You can get a FREE credit report within 30 days of the approval or rejection of your Cashline application via the CBS website or one of its registered offices.
    • GIRO set-up: Automatic transfer of funds to and from your Cashline account is possible if you set up a GIRO funds transfer facility.

    Bid Goodbye to Inconvenience With DBS Cashline Auto Top-Up Feature

    Why take the risk of declined payments when you can enjoy complete control and convenience by setting up an auto top-up facility?You’ll be at complete liberty to decide on the minimum threshold amount and the top-up amount. Once the facility is set up, your Cashline Account will be topped up automatically by the amount chosen, every time the account balance hits the threshold mark set by you. You can link up to 5 savings and 5 current accounts and ensure that you don’t miss payments on your loans or other financial commitments. In order to set it up, simply indicate the accounts that you wish to link, indicate the minimum threshold amount, and the top-up amount (can’t be less than S$50). You’re all set!

    Wish to Terminate the Facility? It’s Easy!

    You can disable the facility anytime you want. You can do it in one of the following ways:

    • Download the relevant form from the bank’s website, fill it up, and mail it back to the bank.
    • Walk into a DBS branch and make a request.

    Apply Now to Enjoy Special Promotional Offers

    Apply on or before 31 December 2018 and accumulate a certain outstanding balance within the first 2 months to earn Expedia vouchers. The value of the voucher will depend on the balance tier as shown below:

    Outstanding Balance Tier Expedia Voucher
    Tier 1: Up to S$350 within the first 2 months of approval Worth S$30
    Tier 2: Up to S$850 within the first 2 months of approval Worth S$80

    How Much Will Be the Interest Charges on My Borrowings?

    Type of Interest Charge Rate
    Prevailing effective interest

    19.8% p.a. if your gross annual income is S$30,000 or above

    29.8% p.a. if your gross annual income lies between S$20,000 and S$30,000

    Default 25.8% p.a. or 35.8% p.a.

    If minimum payment isn’t made by the due date mentioned on the line of credit statement, you’ll be charged an additional 6% p.a. interest rate on the prevailing rate. Only if you make the minimum payment at least in the next three statement months, will the interest rate revert to the prevailing charges from the first day of the next statement cycle.

    Fees and Charges

    Minimum monthly charge 2.5% of the outstanding balance, subject to a minimum of S$50
    Interest Charge At least S$10
    Annual fee (waived for the first year) S$100
    Late payment fee S$105
    Overlimit fee S$40
    Fee on returned cheque S$40 per cheque
    Fee on stop-cheque request S$30 per cheque
    Request for past statement beyond 6 months from the date of request S$20 on each instance
    ATM card replacement fee S$5 per replacement
    Failed GIRO transaction fee S$20
    Loan prepayment fee Nil

    Can DBS Cashline Offer You Better Value in Comparison to Other Lines of Credit?

    DBS Cashline may seem to be an interesting choice when contrasted against other lines of credit in Singapore and even credit cards. Here’s how it fares when juxtaposed with the other options:

    Product Prevailing Interest Rate Default Interest Rate Annual Fees Minimum Monthly Payment Minimum Interest Charge
    DBS Cashline From 19.8% p.a. to 29.8% p.a. From 25.8% p.a. to 35.8% p.a. S$100 (Waived for the first year) 2.5%, subject to a minimum of S$50 S$10
    Citi Ready Credit 20.95% p.a. Up to 26.95% p.a. (on 2 or more late payments within 6 months) S$100 3%, subject to a minimum of S$45 S$5
    OCBC EasiCredit From 19.98% p.a. to 29.8% p.a. Up to 36% p.a. S$80 (Waived for the first year) 3%/5%, subject to a minimum of S$50 S$5
    Maybank CreditAble 19.8% p.a. 25.8% p.a. S$80 3%, subject to a minimum of S$30 S$5
    HSBC Personal Line of Credit 18.5% p.a. (normal) 21.5% p.a. S$60 3%, subject to a minimum of S$15 S$10
    UOB CashPlus Line 19.98% p.a. 29.98% p.a. S$100 2.5%, subject to a minimum of S$30 S$5

    In Singapore, cash advance on a credit card could go up to 28.92% p.a. and the effective rate of interest could be as high as 25.92% p.a. So, it’s quite apparent that borrowing from the DBS Cashline credit facility is cheaper than borrowing on your card. You may also treat this DBS account like a savings account and access cash quickly whenever you want.

    Keep in Mind: This Can’t Be Used to Settle Other DBS Credit Facilities

    While a line of credit can offer instant cash and security, you should carefully consider the following points before you apply:

    • Even though there is no fixed repayment period, you’ll still have to make the bank-mandated minimum monthly payment to avoid interest charges, late charges, and default interest rates.
    • The interest rate may be higher than the general charges applicable on a monthly instalment personal loan in Singapore.
    • You won’t be able to use your Cashline credit facility to repay the outstanding balance on loans, cash advances, cards, other credit facilities, or banking facilities provided by DBS.
    • A chequebook will be mailed to your address within 3 days to 5 days of approval of your application. However, if there is a need to reprocess your application due to some administrative reason, you’ll have to separately apply for a chequebook, if you need one, at a DBS/POSB branch.
    • You’ll have to pay an annual fee to access the funds, irrespective of the number of times you use it during a period or the quantum of each borrowing.
    • Cash deposits made to your Cashline account but not verified immediately, may be subject to a cash count by the bank.
    • A returned GIRO fee may be charged if your GIRO transfer request is returned or can’t be processed.

    Are You Eligible for This Credit Facility?

    To apply for this loan, you’ll have to satisfy the following conditions:

    • You’re a Singaporean citizen or PR.
    • You’re aged between 21 years and 70 years.
    • Your annual gross income is at least S$20,000.

    Your application may not be processed without supporting documents. Click here to check out the complete list of supporting documents.

    Need Standby Cash? Apply for Cashline Through One of the Following Channels

    If you’re an existing DBS customer, you may apply for a Cashline account by using your digibank online credentials. Otherwise, you may select one of the following channels:

    • Use your iBanking login.
    • Use your ATM card and PIN. If you have a DBS/POSB credit card, you may select it as the payment option.
    • Choose the “I have none of the above” option and fill in the form, if you’re a new DBS customer.

    You may fill up the relevant contact form available on the bank’s website if you encounter an error with login or you have misplaced the login credentials. A line of credit could turn out to be nothing short of a lifeline during unexpected financial emergencies. Whether your car has suddenly broken down and needs expensive repair or your car’s COE renewal date is near, you may use this line of credit to meet your financial exigencies. Come to think of it, you may consider it to be a bank account that lets you carry out regular banking transactions with the added benefit of borrowing or you may think of it as a credit card on which lower interest charges apply.

    What Else Should You Know Before You Apply?

    Q. How is the interest rate calculated on a per-day basis?

    A. Daily interest will be calculated in the following manner:

    Daily interest= (Number of days in the billing cycle) / 365 (or 366 in case of leap years) x Effective interest rate applicable x Outstanding balance

    Q. Will I get a monthly statement with payment details?

    A. Yes. The statement will outline the minimum due amount, the payment due date, and all the transactions made within the statement cycle.

    Q. What are the modes of repayment available?

    A. You may repay the outstanding balance through any one of the following channels:

    • DBS iBanking
    • DBS Digibank mobile app
    • AXS stations
    • Cash payment at DBS/POSB branches
    • Cheque deposit or mail-in

    Q. Can I request the bank to reconsider a credit limit raise on my Cashline account?

    A. Yes. However, you’ll have to supplement your argument for a credit limit increase with supporting and valid income documents.

    Q. Can I apply for a chequebook if I didn’t apply for one in the beginning?

    A. Yes, you may. Simply visit a DBS/POSB branch to submit your request form. Alternatively, if you have a signature-operated current or savings account with DBS/POSB, you may download the relevant form from the bank’s website, fill it out, and mail it to the bank.

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